Random notes on real estate investing

Considerations when looking at any property

• Purchase price - e.g., 150K

• Rehab  - e.g., 50k (when and if to do it)

• Sale  - e.g., 250K 

• Rental potential - e.g., 1k

• Time - 6 months

• Profit (250K - (150k + 50k) = 50k) ==> in 6 months

• Risks (internal and external) (market shifts, unexpected events, borrowing of cash)

• rent income over X years

• increase in property value over X years 

Need to look at the amounts of cash flow IN and OUT

Timing of cash 

E.g., Hypo

• - 150 k on rental 

• - rehab is 25k

• - rent is 1k (income it can rent)

• - Sale price 

Cash Flow Signature - all investments opportunities have this
Types

• Rental income property

• fix and flip

• apartments

• commercial real estate

Partnerships



Need to understand Risk-Reward for Investment Opportunities 

• Need to do investment analysis 

• (1st filter) Back of Envelop Analysis (pen and paper) (75%)

• (2nd filter) Detailed analysis and validation of assumptions (20%)

• (3rd filter) Letter of Intent & Due Diligence (5%) (e.g., 1 in 20)

Investment analysis process
1. Understand Analysis scope (what info do you need?)
2. Gather data (market sale prices, market rent, e.g, comps; use Zillow )
3. Build a Model (e.g., Excel)
4. Test & Interpret (most important), most difficult to master 
5. Make a decision 
.


Data Gathering tools

USA

• trulia.com (pulls from MLS so may be more accurate)
• redfin.com
• craigslist.com
• loopnet.com (more for commercial)
• Rentometer.com (get quick rent estimate for your property and comps but requires Pro version for additional data)

Canada

• realtor.ca
• rew.ca
• remax.ca
• craigslist.ca

Latin America

• casa.com

Dubai/UAE

• dubizzle.com
• propertyfinder.ae

India

• indiaproperty.com
• realtor.com/internationa/in
• 99acres.com
• https://housing.com/in/

Philippines

• www.property24.com.ph/philippines/houses‎
• homes.trovit.ph/For-Sale/Houses‎
• www.lamudi.com.ph/house/buy/
• https://www.realtor.com/international/ph/
• https://www.olx.ph/real-estate

China (helps if you know Chinese)

• www.fang.com
• www.dichan.com
• www.juwai.com (if you're targeting Chinese buyers with international real estate)

Other International

• realtor.com
• europeanproperty.com (reach out to agents with listings in your target market)
• http://suumo.jp/ (for Japan)